Annually compounded rate of return


Problem: Misty needs to hav $15,100 at the end of 2 years in order to fulfill her goal of purchasing a small sailboat. She is willing to invest the funds as a single amount today but wonders what sort of investment return she will need to ear. Figure out the annully compounded rate of return needed if she can invest $12,500 today.

Annually compounded rate of return..??

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Finance Basics: Annually compounded rate of return
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